The Board of Directors of GRENKE AG (ISIN: DE000A161N30), with the approval of the Supervisory Board, today resolved on a capital increase against cash contribution with an issue volume of up to EUR 200 million under the exclusion of current shareholders' subscription rights (this corresponds to approx. 4.3% of the current share capital based on the Xetra closing price of June 12, 2018). The Company's share capital shall be increased through the partial use of the Company's authorised capital that was resolved on by the Annual General Meeting on May 03, 2018. The Company will issue new no-par value registered shares with dividend entitlement for the fiscal year 2018 and bearing rights equal to those of the existing outstanding shares of the Company. The new shares will be offered to qualified investors as defined by Section 2 (6) WpPG outside of the United States of America under Regulation S of the U.S. Securities Act of 1933, as amended in a private placement by way of an accelerated bookbuilding offering. The private placement will commence on June 13, 2018 and is expected to end on June 14, 2018. The Company reserves the right to close the order book at any time.
The placement price will be determined by the Board of Directors after conclusion of the accelerated bookbuilding offering and is expected to be announced on June 14, 2018.
The new shares shall be admitted to trading on the regulated market of the Frankfurt Stock Exchange without a prospectus with simultaneous admission to the sub-segment of the regulated market with additional post-admission obligations (Prime Standard). The new shares will be included in the current listing as per June 20, 2018.
GRENKE AG intends to use the net proceeds from the capital increase to finance the Company’s further growth in its core markets and successful internationalisation strategy. In light of the envisaged strong growth, the capital increase is expected to support the very strong capital base and maintain the equity ratio in the long term over 16%.